Trump’s economic illiteracy and disrespect of moral hazards have no bounds.
Putte Pimps Fannie and Freddie
Trump: Before I became President, “OPEC” kept Oil prices high. It wasn’t right for them to do that but, in a different form, is being done again — This time by the Big Homebuilders of our Nation. They’re my friends, and they’re very important to the SUCCESS of our Country, but now, they can get Financing, and they have to start building Homes. They’re sitting on 2 Million empty lots, A RECORD. I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!
Trump Pushes IPO with Government Guarantees
- Historic stock sale: Reports in May 2025 indicated that Trump was “giving very serious consideration to bringing Fannie Mae and Freddie Mac public” with an initial stock offering. A potential IPO could raise billions of dollars.
- Government guarantee: While considering privatization, Trump has also stated that the U.S. government would “keep its implicit GUARANTEES” and retain its oversight of the mortgage companies.
- Seeking Wall Street input: In August 2025, Trump met with executives from major U.S. banks to discuss plans for potentially selling a stake in the companies.
- Unclear timeline: As of October 2025, Federal Housing Finance Agency (FHFA) Director Bill Pulte has confirmed that Trump has not yet made a final decision on an IPO or selected a lead bank for the offering.
- Calling for more homebuilding: On October 5, 2025, Trump made a post on Truth Social calling on Fannie Mae and Freddie Mac to “get Big Homebuilders going” to increase housing supply. He claimed that homebuilders were “sitting on 2 Million empty lots, a RECORD”.
- FHFA Director’s response: The director of the FHFA, Bill Pulte, responded on social media, indicating he was “on it,” but the specific actions the FHFA and the mortgage giants could take remain unclear to analysts.
Good Lord!
Trump wants to privatize housing but retain government guarantees and subsidize homebuilders.
Gee, what could go wrong?
Government should not be in the housing business at all. More explicitly, government should not be running any businesses.
Support for this idiocy on X is massive.
Look Who Wants In on the Deal
The Wall Street Journal reports Big Banks Woo Trump for Roles on Blockbuster IPO
Goldman Sachs Chief David Solomon was at the White House this summer pitching President Trump on why his bank should lead a huge coming deal: the initial public offering of mortgage giants Fannie Mae and Freddie Mac.
Midway through the presentation, Trump invited in a group of athletes from his council on sports and fitness. Solomon continued speaking as former professional wrestler Paul “Triple H” Levesque and golfer Bryson DeChambeau looked on.
It was a surreal meeting befitting what is perhaps the strangest IPO “bake-off” ever.
“Everyone wants to be on this,” one top bank executive said.
The CEOs of the country’s six largest banks—Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo—have all made pilgrimages to the White House. They have courted Trump and others involved, including Treasury Secretary Scott Bessent, Federal Housing Finance Agency Chief Bill Pulte and Commerce Secretary Howard Lutnick.
Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo are all expected to land some sort of role, people familiar with the deal said. But the banks are jockeying for the two lead roles, which come with bigger fees.
When Trump shared on social media what appeared to be an AI-generated image of himself ringing the New York Stock Exchange bell for the IPO of the “Great American Mortgage Corporation,” bankers chattered among themselves trying to figure out if he had lifted it from one of their decks.
It turns out the image came from Pulte, a person familiar with the matter said.
With lucrative fees and government guarantees, who wouldn’t want in?
Trump’s Takeover of US Businesses
- The government has a 10% equity stake in Intel (INTC)
- The government has a 15% equity stake in MP Materials (MP)
- The government has a 10% equity stake in Lithium Americas (LAC)
- The government has a 10% equity stake in Trilogy Metals (TMC)
- The government has aA “golden share” in US Steel Corporation (USS)
- After the launch of the $TRUMP memecoin, Trump’s wife Melania launched her own meme coin, $Melania on January 19, 2025
- Nvidia (NVDA) agreed to pay 15% of revenues from chip sales to China to the U.S.
- AMD agreed to pay 15% of revenues from chip sales to China to the U.S.
- Trump started a government website for prescriptions called TrumpRx.gov.
- Trump wants Fannie Mae and Freddie Mac to subsidize homebuilders
Government Knows Best
And Trump will not rule out taking Greenland by force and wants to make Canada the 51st state.
The cultists call this “winning”.
Just imagine the outcries if Biden did any of this.
Goldman Sachs, Citigroup, Bank of America, JPMorgan Chase, Morgan Stanley and Wells Fargo are all expected to land some sort of role.
Will the big winner be the one buying the most $Melania coins?
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